IRS account transcript, estate tax closing letter | KPMG | US
Share with your friends

IRS account transcript as substitute for estate tax closing letter

IRS account transcript, estate tax closing letter

The IRS today released an advance version of Notice 2017-12 which provides that—for purposes of determining if an IRS examination of an estate tax return has been completed—an IRS account transcript can substitute for an IRS estate tax closing letter on IRS Letter 627.


Related content

Notice 2017-12 [PDF 21 KB] clarifies that an IRS account transcript is a substitute for an estate tax closing letter and is available at no change. Estates and their authorized representatives can request an account transcript (in lieu of an estate tax closing letter) by filing Form 4506-T, Request for Transcript of Tax Return.

Transcript code “421”

Today’s IRS notice explains that executors, local probate courts, state tax departments, and others traditionally have relied on estate tax closing letters (Letter 627) for confirmation that the IRS has completed its examination of the estate tax return and that the IRS file has been closed. 

However, for estate tax returns filed on or after June 1, 2015, the IRS changed its policy, and now only issues an estate tax closing letter if requested, provided that the request is made no earlier than four months after the filing of an estate tax return. Today’s notice provides a telephone number for making requests for estate tax closing letters. 

The IRS notice explains that an account transcript that shows a transaction code of “421” can serve as the functional equivalent of an estate tax closing letter. Still, the IRS may reopen its audit of the estate tax return after the account transcript is coded with “421” just as the IRS could after the issuance of a closing letter.

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal